Retail Analytics

Five things that could be hindering your retail store performance

Written by Tony Loxton
Sep 22

Poor retail performance is something that the majority of retailers face at some time or another. While this can – and does – spell the end for some, this doesn’t have to be the case.

The retailers who don’t take flagging sales at face value are the ones who are able to rectify the problem and ensure that they’re doing all they can to mitigate against future sales slumps. If your store’s performance is less than ideal, the following factors may be to blame:

You’re targeting the wrong market

One of the most common reasons businesses shut up shop is because their product isn’t aligned with their target market. Their price point may be out, the market may be saturated with competitors or their offering is entirely irrelevant to the market at hand. If you’re located in an area with a limited market, you might need to move in order to tap into the buying power of a market that’s aligned with your product or service. If you’re located in a major urban hub that boasts a multitude of different target markets, boosting your retail store performance might be as easy as tweaking your marketing or sales strategy to align with a market that needs or wants your product or service.

Your location is off

The saying ‘location, location, location’ doesn’t just apply to the property industry, it has relevance to your retail store performance, too. If your store in located in an area where there’s no constant flow of foot traffic or where parking or transport is lacking, your store performance could suffer. Tying in with point number three, if you’re located in an area where the majority of the local market is inconvenienced by having to go out of their way in order to access your store, you’ll run into cash-flow problems sooner or later.

Your product isn’t aligned with the local market

The secret to a successful retail operation lies in your ability to fulfill a need or want of your target market. For example, opening a bespoke handbag boutique in a neighbourhood that’s populated with cash-strapped students is a classic case of offering a product that’s misaligned with the target market at hand. Opening a thrift store, however, would be a viable business idea, appealing to the eclectic tastes and limited budgets of students.

The author of this article from Small Starter uses the example of buying a Rolex. As much as he covets a timepiece from the bespoke brand, the bottom line is that he can’t afford it. He may covet a Rolex watch and even walk into a Rolex shop to browse, but the reality of the situation is that he’ll walk out empty handed. This, as opposed to selling luxury timepieces in an upmarket urban hub like uptown New York City, where the target market is always on the lookout for items to spend their disposable cash on.

Your product doesn’t solve a pain point or need

Everyday essentials, such as petrol, milk or nappies aside, people only buy what they need (a safer car, for example), or what they really want (tickets to the Brumbies’ next game). And if your product doesn’t fall into one of the two categories, you’ll have a hard time turning a profit. The moral of the story? Get to know your customers and potential customers: they’ll dictate the products and services they need (or want), as well as the best ways you can tailor your offering.

Small Starter writes about a hypothetical example of an entrepreneur who capitalises on the fact that his neighbourhood is populated with time-starved, working-class individuals who spend the majority of their week working and commuting. His big idea? To launch a laundry service that collects and then drops off laundry. His business was a roaring success, due to the fact that his offering solved a pain point for his clientele: the fact that they needed to have their laundry done, but were starved for time.

Your sales staff aren’t cutting it

Your sales staff can be the difference between a satisfied customer (and hence, a sale) and stock that gathers dust on the shelf. Poor retail store performance is often due to unskilled or unenthusiastic staff, which means that prioritising staff training and staff motivation programs should be an essential aspect of your business processes. As we’ve mentioned before, customer experience now outweighs price point as a brand differentiator for customers, and if your staff are slacking, your retail store performance will suffer.

The good news is that poor retail store performance can be rectified, but only if you’re making use of the right in-store analytics. The first step towards improving your store performance lies in identifying the cause. Blix Traffic can help you to do just that. By monitoring your store’s foot traffic, you can establish trends in visitor flow, walkbys, repeat customers, dwell time and more.

Ready to amplify your retail store performance? Find out more about Blix Traffic today.

Learn more about Blix Traffic for retail

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